A century-old wealthy family that rose from Shanghai

June, No. 1 Peak Road.

Chen Wenkai woke up from his sleep and gently withdrew his hand from under his wife Fang Yi. He didn't want to wake her, but Fang Yi still opened her eyes.

"The men in your family all like to get up early, where do you get so much energy?" Fang Yi said lazily.

She was a Cantonese-born Hong Konger whose father was a businessman. She had also studied abroad. She met Chen Wenkai at a dinner party for Chinese Americans. The two dated for many years before marrying into the family in 1963 when Chen Wenkai was 25 years old.

Chen Wenkai instinctively asked, "How did you know?"

Fang Yi gently patted her husband and said sweetly, "It's what the women in our Chen family were talking about. Otherwise, how would I know?"

Knowing he was in the wrong, Chen Wenkai immediately leaned down and kissed Fang Yi, before saying, "It's probably because my father's genes are good that all of us siblings have inherited good physical qualities."

Fang Yi said with a smile, "That's true! But we can't say it's all because of your father-in-law's good genes. Your brothers and sisters are all smart and handsome, and beautiful and smart. Their intelligence and physique are definitely inherited from your father-in-law, but their beauty and handsomeness must have been inherited from their mothers-in-law."

She only said that because all four mothers-in-law were so beautiful.

Chen Wenkai nodded, offering no rebuttal. They, as his children, had some guesses about this, but dared not speak rashly. Their father's genes had diminished considerably by their generation; at least their father's photographic memory was far less impressive, and their father's extraordinary physical abilities had also diminished considerably.

Despite the decline, his siblings had no trouble studying since childhood, indicating that they were still quite intelligent; their physical fitness was also relatively good, and even in sexual matters, he could easily last for more than half an hour.

"You should rest more, and try to get pregnant with our third child soon!"

Fang Yi immediately laughed and said, "Maybe she's already pregnant. You were so vigorous last night, lasting forty-five minutes!"

Chen Wenkai, being a science and engineering student, clearly lacked interest in this area, and upon hearing this, simply replied, "Pregnancy has nothing to do with the length of time."

Fang Yi pulled up her bedding and said smugly, "I think it's related."

Seeing this, Chen Wenkai could only shake his head, get dressed, and leave the bedroom. His mind was filled with anticipation for his father's upcoming tour of the Yangtze River Industrial Group; he believed his father would have new instructions and ideas.

After he left, Fang Yi opened her eyes and muttered, "Bookworm."

But a happy smile appeared on her face.

Her husband, though seemingly not very romantic, was actually very loving, and she wasn't worried about him taking concubines or keeping women. Of course, she hadn't heard of any indiscretions by the Chen brothers after marriage, which clearly indicated the Chen family's strict upbringing.

Then, Fang Yi touched her belly and muttered to herself, "This is only my third child. I hope it's a boy! If not, I'll have five!"

It turned out that their first child was a girl, which put Fang Yi under a lot of pressure. Fortunately, their second child was a boy, so her husband's lineage could naturally maintain the family business.

However, Fang Yi also understood that although her parents-in-law said that each wife should have four children, her eldest brother had three boys (the second was a girl), and her third brother, Chen Wenming, and his wife, An Shuhui, had three boys in a row. Needless to say, each of their daughters-in-law should at least have two boys as a minimum, and three boys would be the ideal.

After marrying into this wealthy and noble family, Fang Yi understood that she had two hopes: first, that her husband would not be a womanizer; and second, that she would be able to bear children.

Firstly, it seems that the Chen family rules strictly prohibit children from misbehaving after marriage, starting with the father-in-law; moreover, her husband is very focused on his career and cares deeply for his family. Although he can be a little lacking in romance at times, he is an overall perfect husband.

Secondly, one should have at least two sons, preferably three. This is because the four second-generation Chan brothers of the first wife's family in Hong Kong will each inherit a large conglomerate. If the third generation does not have at least two male heirs, it will be difficult to ensure the continuation of the family business. In fact, having three male heirs is considered a guarantee of succession.

When Chen Guangliang's car arrived at the Xinfeng Textile Group in Tsuen Wan in the morning, Chen Wenkai, Lin Jianyun, and others were already waiting.

After all, Chen Guangliang might not come even once a month, and when he does come, he'll definitely have new ideas or discover some problems, which everyone takes very seriously.

"Let's go, we'll conduct the inspection, and you can report back later!"

Lin Jianyun quickly replied, "Okay."

The industrial park of the Sun Fung Textile Group covers a huge area of ​​100 million square feet and is located in the most desirable location in Tsuen Wan – near Castle Peak Road.

After World War II, Xinfeng Textile acquired land here, which cost one or two million Hong Kong dollars at the time; of course, it is now worth at least 1 million Hong Kong dollars.

Of course, Xinfeng Textile Group is unlikely to choose to relocate in the next one or two decades.

At this time, the Xinfeng Textile Group already had 1.2 workers, making it the largest employer in Hong Kong and still the leading player in Hong Kong's textile industry.

The park contains several industrial buildings ranging from 6 to 12 stories. The entire factory area includes five major processes: spinning, weaving, printing, dyeing, and finishing, forming a complete industrial chain.

It's important to understand that many textile factories in Hong Kong either produce textiles, dyeing and printing, or garments. Very few can handle all five major processes. If a factory can operate entirely without outsourcing, it's likely to be only Xinfeng Textile.

Furthermore, Xinfeng Textile Group also has another key element – ​​its brands, including Lacoste and its luggage brands. Lacoste, in particular, has established a strong presence throughout Asia, with stores in Singapore, Taiwan, Japan, South Korea, Thailand, and Malaysia, making it a high-end brand in these regions. In Hong Kong, Lacoste is a highly influential brand, comparable to the Bauhinia brand.

"Boss, the revenue structure of our Xinfeng Textile Group has changed. Garments now account for 6%, textile printing and dyeing for 3%, and branded products for 1%. In terms of quotas, Xinfeng Textile Group is still the largest quota holder in Hong Kong, which is enough for our exports," Lin Jianyun took the opportunity to report the detailed situation.

In Hong Kong at that time, whoever possessed sufficient quotas could reap substantial profits even without direct production. Conversely, if you were a large garment factory but didn't control quotas, you were like a toothless tiger, your strength greatly diminished.

Chen Guangliang looked at the busy figures and clean environment in the garment workshop and felt quite pleased. The workers at Xinfeng Textile were generally of high caliber, a situation naturally built on excellent salaries and benefits.

To achieve this, besides strengthening management, it means 'earning a little less'. Chen Guangliang has always been quite 'supportive' of earning less, though he simply 'earns a little more' elsewhere. A prime example is that they've long been able to manufacture clothing for mid-to-high-end European and American brands. This business is more profitable than directly exporting clothing, but they require quality and craftsmanship. "What about overseas?"

Lin Jianyun immediately said, "Regarding overseas, our total assets in Nigeria have exceeded HK$1 million. In addition to supplying Nigeria, our products also supply the entire African region. Our garment factory in Singapore has also more than tripled in size."

The garment factories in Singapore can later expand into more politically stable regions such as Malaysia and Thailand.

Chen Guangliang inspected the factory, and it was already noon. He then grabbed a quick bite at the factory canteen. This canteen was only for management and not open to the workers. The workers at Xinfeng Textile all brought their own lunches, and the factory provided a meal allowance.

It's a very simple principle—land is incredibly expensive in Hong Kong, and building a large canteen would be too costly for Sin Fung Textile. Therefore, it's better to provide meal subsidies directly, which saves the company money and makes the workers happy.

After dinner, Chen Guangliang and everyone went into the conference room for a high-level meeting of the textile group.

Chen Guangliang stated, "The textile industry is characterized by a shift towards regions with cheap labor. Hong Kong's labor force is no longer cheap; South Korea, Taiwan, and Singapore are all cheaper. Because of this, exports from South Korea, Taiwan, and Singapore have increased in recent years, especially from South Korea and Taiwan."

Whether it's the textile industry or the electronics industry, they will all be shifting to these three locations. On the other hand, despite this shift, Hong Kong's exports will continue to increase because the overall market is growing. Take the electronics industry, for example; Hong Kong already employs 50,000 to 60,000 people in just ten years.

Lin Jianyun nodded after a moment and said, "Yes. Our Xinfeng Textile Group began to focus on developing the garment industry in the 1950s, and surpassed the textile industry in the 1960s. This change allowed us not only to develop steadily, but also to increase added value."

Everyone looked at Chen Guangliang with admiration. Although this boss would appear only after long intervals, he was the one who set the direction for the group. If they had stuck to the textile industry instead of vigorously developing the garment industry, they might have been overtaken by others. Throughout the 1960s, Hong Kong's garment industry developed rapidly; it was a booming sector and a high-value-added industry.

In addition, the Xinfeng Textile Group's entry into Nigeria in the late 1950s was another crucial opportunity. At that time, the British withdrawal left Nigeria with a large amount of foreign exchange, and Nigeria's domestic productivity was low. Entering at that time was a stroke of genius. Nigeria is one of the most populous countries and had been colonized by the British, so it naturally had room for development.

Chen Guangliang then said:

"Therefore, we must embrace change. In the 1970s, the garment industry will completely surpass the textile industry, and the gap will widen. Developing garments will remain our focus. However, a new direction has emerged: clothing brands. When you go abroad, you will find that clothing in Europe and America is moving towards fashion trends, which has actually given rise to a new direction for clothing brands—casual wear. And Hong Kong's clothing is gradually changing, looking towards Europe and America, such as jeans, T-shirts, and shirts. So, I decided to establish another clothing brand—Uniqlo—specifically developing 'affordable' and 'simple and stylish' clothing."

“For Uniqlo’s designs, we don’t need to hire high-end designers or even Italian designers like Lacoste does. Instead, we just need to hire young designers. We buy the latest magazines from Europe and America and then have young designers redesign the clothes in them, while always emphasizing the concept of ‘simple and comfortable’.”

"Uniqlo's fabrics emphasize comfort, such as cotton. Since it's casual wear, after taking off formal attire, it's about relaxing, so comfortable clothes are very important."

"Uniqlo's store layout should primarily focus on stacking. For example, setting up various cabinets, layer upon layer, to stack clothes inside. Similar to a warehouse, this increases the quantity of items in the store."

"Uniqlo's service should primarily be self-service; we don't need to push sales on customers."

"Uniqlo's supply chain is very important. Good quality at low prices means we need to work hard on the supply chain, and of course, we are the best supply chain ourselves."

"Uniqlo stores should primarily be located in shopping malls, department stores, and large stores. With 'good quality and low prices,' volume sales are naturally the priority."

"Uniqlo stores were designed from the outset to offer menswear, womenswear, childrenswear, and women's underwear, aiming to be a one-stop apparel platform."

Lin Jianyun and the others quickly took notes, knowing that this matter was very important.

What Chen Guangliang was explaining was actually a clothing brand model that appeared in Hong Kong and Japan in the 1980s in his previous life; but in reality, it had already appeared in Europe and America in the 1970s, including in Australia in Asia.

Now that we are about to enter the 1970s, Hong Kong's economic level has exceeded that of the same period in the previous era by more than three years, with an overall growth rate exceeding that of the same period by more than 20%. There are some things we might as well do first.

Finally, Chen Guangliang added, "Denim and jeans are a huge market opportunity, and we need to get started as soon as possible."

"Yes, boss"

The meeting didn't end until after 2 p.m.

Later, Chen Guangliang also took his son Chen Wenkai to a Crocodile store, where the two shopped as customers to experience it firsthand.

During this time, Chen Guangliang explained the layout and service of Uniqlo to Chen Wenkai in detail at the Crocodile store.

In the evening, he dined alone with Chen Wenkai at the Shangri-La Hotel to continue planning the future development of Xinfeng Textile Group.

“We are still retaining the ‘textile printing and dyeing’ because we need to maintain the integrity of the entire industrial chain. If the mainland opens up one day, we can transfer the textile printing and dyeing to the mainland, and eventually we may only need the garment manufacturing and branding links.”

Chen Wenkai asked curiously, "Father, when do you think the mainland will reopen?"

Chen Guangliang smiled and shook his head, saying, "It will open up; changes can happen at any time. What we need to do is embrace change."

Chen Wenkai nodded and said, "If the mainland really opens up, its huge market will be the most valuable asset."

Chen Guangliang immediately said, "Remember this! A country that is too poor will not have purchasing power in its market. Therefore, we must first use the country's cheap labor to help it rise step by step, and then we will see returns in the future. We must have a long-term vision."

By 1978, the Chen family could invest in many industries in the mainland. These investments did not need to yield short-term returns; their vision should always be forward-looking.

"I remember my father."

The Cheung Kong Industrial Group could have entered the mainland market as early as 1978, whether through joint ventures or processing trade, it would have been among the first to do so. Even if for the first ten years or so it only utilized the cheap labor in the mainland and didn't sell its products there, it was still very profitable. (End of Chapter)